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1977 Supreme(Ker) 286

Kerala High Court
V.P.GOPALAN NAMBIYAR,G.BALAGANGADHARAN NAIR
State of Kerala - Appellant
Versus
C.M.Sebastian - Respondent
Decided On : 12/16/1977

Advocates:
Govt. Pleader, for Appellants; V. Bhaskaran Nambiyar, C.R. Natarajan, M.K. Anandakrishnan, R. Bhaskaran and K. Joseph Ninan, for Respondent.

The main legal point established in the judgment is the inappropriateness of interfering in contractual matters under Art. 226 and the categorization of the case as falling within the third category of alleged breach of contract.

Headnote:

seigniorage fee - lease construction - 1877 Act Section 3 - The court discussed the construction of a term in Ext. P-1 lease, executed in 1877, in respect of forest land. The key legal provision discussed was the clause (3) of the lease-deed, which provided for the payment of royalty at stipulated rates for felling and removing trees within six months. The court analyzed the necessity of payment before property would pass and the applicability of the stipulated rates more than a century later. The court's decision was influenced by the interpretation of the contractual term and the inappropriateness of entering into contract-law in proceedings under Art. 226 of the Constitution.

Fact of the Case:

The case involved the construction of a term in a lease deed executed in 1877 regarding forest land and the payment of seigniorage fee for felling and removing trees within six months.

Finding of the Court:

The court found that it was inappropriate to interfere in proceedings under Art. 226 for construing and expounding a contractual term. The court also concluded that the case fell within the third category of alleged breach of contract, where no writ or order could issue under Art. 226 to compel the authorities to remedy a breach of contract.

Issues: The issues involved the construction of the lease term, the necessity of payment before property would pass, and the applicability of stipulated rates more than a century later.

Ratio Decidendi: The court's decision was based on the inappropriateness of interfering in contractual matters under Art. 226 and the categorization of the case as falling within the third category of alleged breach of contract.

Final Decision: The appeal was allowed, the judgment of the learned Judge was set aside, and O. P. No.783 of 1977 was dismissed. No order was made as to costs.

Judgement

GOPALAN NAMBIYAR, C.J. :- We regret our inability to agree with the learned Judge who allowed the writ petition of the 1st respondent and held that under Ext. P-1 document the provision was categoric that the seigniorage fee is leviable at the rates mentioned and not at something to be estimated de hors the provisions of the document. The learned Judge pronounced that the writ petitioner was entitled to issue of a transport permit and that the value to be realised for timber was only at the rate of Rs. 3/- (sic Rs. 4/-?) per candy and that on the petitioner paying the same in accordance with the conditions in Ext. P-1 the respondent would issue the transport permit to the petitioner expeditiously and without delay. The State of Kerala and the Chief Conservator of Forests, and the Divisional Forest Officer, Nenmara have come up in appeal.

2. The controversy hinges round the construction of a term in Ext. P-1 lease, executed by and between His Highness the Maharaja of Cochin and one George S. Duppen on 16-7-1877 (the learned Government Pleader submitted that 1877 shown in the copy Ext. P-1 is a mistake for 1867), in respect of about 409 Acres of the Nelliampathi tract of forest land known as 'Nelliccolla' situated on the Nelliampathi Range, and containing a number of teak, ebony, and blackwood trees. These were excepted from the demise in the preambulary part of the document. Clause (3) of the lease-deed provided :

"3. Teak, ebony and blackwood trees excepted and reserved out of the grant hereby made, shall be felled and removed within six months from the date hereof, otherwise the same shall become and be the property of the said George S. Duppen, His Heirs, and Assigns, he or they, paying to His Highness, His Heirs. Successors and Assigns for the same a royalty of three rupees for candy for Ebony, and blackwood and of four rupees per candy for teakwood".

Admittedly, the teak trees with which we are concerned in this application were not felled and removed within six months mentioned in the above clause. There is also no controversy that the rights of His Highness the Maharaja of Cochin to receive the royalty has now devolved upon the Kerala Government. By Ext. P-2 proceedings dated 22-11-1975 from the Chief Conservator of Forests, Nenmara to the Director Poothundu Plantations (P.) Ltd., sanction was accorded to fell 12 (twelve) marked rosewood trees in the estate, in pursuance of the application by the Estate dated 15-6-1975 recited in Ex. P-2, and subject to the conditions of the lease-deed. The writ petitioner is stated to have got the right of cutting the above trees, under a power-of-attorney from the Estate and an assignment of the cutting permit in his name on 3-12-1975 by the District Forest Officer, Nenmara. It appears that he felled the trees and stacked the logs in the Estate, and on 16-7-1976, sold the logs to a third party at Ernakulam. When he approached the Divisional Forest Officer, Nenmara for issue of a permit and for transportation of the logs the Officer had certain doubts and reservations to be cleared which delayed the issue of the permit. The petitioner thereupon seems to have presented Ext. P-3 petition dated 20-4-1976 setting out the above facts to the Minister for Forests, Kerala, praying to issue directions to the Divisional Forest Officer, for issuing a permit for transportation of the logs after receiving the security as per conditions in the registered lease-deed. We fail to see how an application of this type for executive intervention with a statutory authority's discretion in the matter of granting a permit was called for or happened to be made. But we notice that by Ext. P-4 dated 21-7-1976 which is a copy of the letter from the Secretary to the Government to the Chief Conservator of Forests, the letter's letter dated 20-5-1976 was recalled, and it was stated that a royalty of Rs. 3/- per candy for ebony and blackwood trees and of Rs. 4/- per candy for teak-wood alone could be collected a




















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